Definition
A significant addition or upgrade to community property that adds value or extends its life — distinct from routine repairs.
A capital improvement is a major project that adds new value to the community or meaningfully extends the life of an asset — such as adding a playground, resurfacing roads, or replacing a roof. It's distinct from routine maintenance, which simply keeps existing assets in working order.
Capital improvements are typically funded from reserves or, if unplanned, a special assessment. Larger improvements sometimes require a membership vote under the governing documents. Distinguishing improvements from repairs matters for budgeting, reserves, and tax treatment.